Ethereum Scaling Solutions Continue to Record User Growth in Ongoing Boring Market Condition
Amidst the growth of Polygon, Arbitrum, Optimism, xDai, and NEAR, the Ethereum hash rate is also recovering while the average transaction fee is under $2.50 (0.001 ETH), daily transactions keeping between 1-1.4 million.
It’s not just non-fungible token (NFT) mania that is continuing in the current crab market. Ethereum scaling solutions are also seeing adoption in this market condition.
Polygon is one of the projects that continues its growth trajectory after a brief decline towards the end of last month.
Ethereum’s sidechain project resumed its daily active user (DAU) growth which increased just under 6% week over week. For three consecutive weeks now, Polygon (MATIC) has well over 100k daily active addresses, noted Raphael, a Polygon enthusiast. Average daily users on the platform also jumped 25% month over month, with about 34% of its users since mid-April coming back. MATIC -2.51% Polygon / USD MATICUSD $ 0.64
-$0.02-2.51% Volume 466.32 m Change -$0.02 Open $0.64 Circulating 7.95 b Market Cap 5.07 b 4 mon StarkWare Proposes to Deploy Aave on its ZK-Rollup L2 StarkNet 4 mon The Sandbox Game Is Migrating to Ethereum Sidechain Polygon and Launching A DAO in 2022 4 mon Bitcoin and Ether Dump More Going Into Year-End, ETH Killers Showing Great Momentum
Currently, Polygon has just over 20% of Ethereum and Binance Smart Chain’s DAU each.
Despite the weekly increases in users and transactions (+2.11%), the cost per transaction on the network has decreased by 12.52%, which resulted in the first weekly revenue decrease since May 31st.
xDai is another scaling solution that is seeing growth, with its active accounts growing past 600k in the last 30 days and over 3 million addresses. The POS network additionally has 66% of STAKE (more than 660k) staked on xDAI. STAKE -2.42% STAKE / USD STAKEUSD $ 6.68
-$0.16-2.42% Volume 234.93 K Change -$0.16 Open $6.68 Circulating 8.46 m Market Cap 56.51 m 10 mon Ethereum Scaling Solutions Continue to Record User Growth in Ongoing Boring Market Condition
When it comes to sharded, Proof-of-Stake (PoS) public blockchain NEAR, just last month it hit 10 million total transactions milestone. Accounts on the blockchain have been growing at an average MoM rate of 175%, reaching about 375k accounts.
Ref Finance, the first automated market maker (AMM) on NEAR, is also seeing a large increase in liquidity, surpassing $1.6 million along with the number of pools which is now at 134. NEAR -4.93% NEAR Protocol / USD NEARUSD $ 5.77
-$0.28-4.93% Volume 394 m Change -$0.28 Open $5.77 Circulating 691.97 m Market Cap 3.99 b 4 mon Bitcoin Is Back Above $51k and Ether $4,100 as The Cryptocurrency Market Goes Green 4 mon Bitcoin Aims for $50k Ahead of Low-Liquidity Holiday Season as Girls Who Code Refuse to “Miss Out” on Crypto 6 mon Bitcoin’s Longest Slump Since May Severs its Pandemic-era Correlation With Tech Stocks
As for Arbitrum, which was launched for developers a month back but is not allowed for public use yet, it has onboarded over 300 projects, including many of the largest dApps deployed on Ethereum, according to the monthly update.
Another popular scaling solution, Optimism, which is yet to be released, is already partnering with projects. Last week, Synthetix founder Kain Warwick announced that exchanges on Optimism (OΞ) would be enabled in the last week of this month.
Amidst this growing adoption of layer 2 solutions, the layer 1 Ethereum blockchain is seeing daily transactions now keeping between 1-1.4 million since late May sell-off while the hash rate has started to recover, as per Etherscan.
There are currently 450k active Ethereum addresses, down from 800k in May, while daily active ERC 20 addresses are at 250k, which were over 430k at May peak when the price was above $4k while ETH price is at around $2,100, as of writing.